ANZ tips $200,000 Sydney house price plunge as RBA mulls fifth rate hike
ANZ forecasts a $200,000 Sydney house price fall by end of 2026 as the RBA prepares a fifth rate hike.
ANZ bank is predicting Sydney house prices will plunge by about $200,000 by the end of next year. Melbourne and Brisbane property values have already fallen by close to $100,000 from their 2026 peaks.
The RBA is expected to hike interest rates on November 3, the fifth rise this year, pushing the cash rate to 4.85 per cent, the highest in 18 years. ANZ's head of economics said the hike was likely.
The rate rise would add $122 to monthly repayments on an average new mortgage of $731,000. More than 90,000 first homebuyers who used Labor's expanded five per cent deposit scheme in the past year could end up owing their bank more than their home is worth.
Liberal senator Dean Smith warned those with only five per cent equity face particularly sharp risk. Treasurer Jim Chalmers accused the Opposition of talking down the economy for political gain.
- $200,000 by end of 2026
- Sydney house price fall forecast
- 4.85 per cent
- New cash rate target
- more than 90,000
- First homebuyers at risk
- November 3
- Rate hike timing
Why it mattersFalling house prices and rising rates squeeze households already under cost-of-living pressure and threaten first homebuyers with negative equity traps.
AustraliaAustralians holding mortgages face steeper repayments, property investors see weakening returns, and young buyers risk entering homes worth less than they borrowed.
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